Hot Bargain Property June 12, 2006
HUGE Profit Potential!
General: Urban East County, 3 bedroom 1.75 bath. Asking price between $425,000 and $450,000. I actually had it in escrow for $415,000.
Why you should be interested: This is a solid home in a great area that needs some fixing up. A close match a few doors down sold for $575,000 a couple months ago.
Selling Points: Great lines of sight and a good view. It looks down the length of the street, as well as across to the opposing hill.
Why I think it's a potential bargain: This sort of property doesn't go for this low of a price here.
Obvious caveats: Only a one car garage.
Why it hasn't sold already: It did! But the guy wouldn't let me do the loan, and the guy he picked hosed him! With this much profit potential, I would have signed anyway!
If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $415,000, the property would be worth approximately $675,000. If you held it those ten years before selling, you would net about $320,000 in your pocket (not including increased value from updates!), assuming zero down payment. As opposed to renting the $2100 per month most comparable currently available rental and investing the difference at 10% per year tax free, you would be approximately $200,000 ahead of the renter, after the expenses of selling.
Fact you should be aware of: Just that it's old as it sits.
Obvious way to enhance value or appeal of property: Polish the floors, landscape the yard, update the kitchen and baths.
This property does not appear to be eligible for a first time buyer Mortgage Credit Certificate provided your family income is not more than $82,800 or $96,600. Ask me for more details, on this or any other property.
I'm a buyer's Realtor®. I am looking to represent buyers, so I find places like this that can be gotten at bargain prices. I save you money while getting paid out of the listing agent's commission, not costing you a penny. Nor are these the only bargains I find. In order to protect everyone's best interests, I require a Non-Exclusive Buyer's Agent Agreement. This is a standard California Association of Realtors form that leaves you are free to work with other agents, but if I find the property you want, I'm the agent you'll use. That's fair, and there is no reason not to sign such an agreement unless you're an agent yourself.
Contact me: Action Realty 619-449-0723, ask for Dan or email danmelson (at) danmelson (dot) com. Ask me to find a bargain that fits you!
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